US court rejects EPA rule expanding E15 sales

Market: Biofuels, Emissions, Oil products
02/07/21

An appeals court has thrown out a federal rule finalized in 2019 that authorized year-round sales of 15pc ethanol gasoline (E15) blends across the US, dealing a blow to biofuel producers who pushed for the change.

The US Court of Appeals for the DC Circuit, in a 3-0 opinion, said the US Environmental Protection Agency (EPA) exceeded its authority in that rule when it said E15 qualified for an emissions waiver for fuel blends "containing" 10pc ethanol. The court said that statuory language was clearly intended for 10pc ethanol gasoline (E10).

"By its plain terms, then, [the exemption] applies to E10, leaving no room for EPA to exempt E15," the court wrote.

Biofuel groups said they were disappointed with the ruling and would work to continue allowing E15 sales this summer and beyond. The ruling is unlikely to go into effect immediately because of a court practice to offer time for appeals. Biofuels groups argue the court's ruling would deprive consumers of a lower-carbon fuel option.

"We are pursuing all available options and will work with the administration and our congressional champions to ensure that we have a solution in place before the 2022 driving season," Growth Energy, the Renewable Fuels Association and the National Corn Growers Association said in a joint statement.

The decision represents a major victory to US refiners, which argued the E15 exemption was unlawful and could cut into their gasoline sales. If the ruling is sustained, it would undermine a long-term strategy from biofuel products to grow sales by expanding the availability of higher-ethanol fuel blends had been restricted in summer.

EPA said it was reviewing the court ruling.

At issue in the case are emission limits on fuel volatility that historically prevented E15 sales in parts of the US during the heat of the summer. EPA officials for years had said their hands were tied by existing law, but the agency changed course under orders from former president Donald Trump. EPA in the 2019 rule argued that because E15 by definition also contains 10pc ethanol, the higher-ethanol fuel should qualify for the long-time waiver.

But the court was unpersuaded by EPA's new interpretation of the statutory language, and said there was nothing in legislative history that suggested that Congress intended for the waiver to apply to E15. The court provided comparison to a bottle of wine to say the language was clearly meant for E10.

"Consider a label that a bottle of wine 'contains 10pc alcohol by volume.' No one would understand that number to be other than a literal statement of the actual amount of alcohol in a serving," the court wrote.

The ruling did not affect EPA's changes in the same 2019 rule affecting the administration of renewable identification numbers (RINs), which are compliance credits regulated parties use to prove they are attaining annual federal biofuel blending requirements.

By Chris Knight

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21/11/24

Brazil congress approves carbon market legislation

Sao Paulo, 21 November (Argus) — Brazil's lower house approved the creation of a regulated carbon market, which is seen as an essential tool for the country to meet its emissions reduction targets. The senate approved the bill earlier this month . It now awaits the president's signature to become law. The legislation, which has been the subject of legislative debates for more than three years, creates the Brazilian emissions trading system (SBCE) and stipulates that companies with emissions greater than 25,000 metric tons of CO2 equivalent (tCO2e)/yr will be subject to the cap-and-trade system. Companies with emissions from 10,000-25,000 tCO2e/yr will need to report their emissions but will not be required to offset them. The market will help Brazil reach its new nationally determined contribution (NDC), according to vice president Geraldo Alckmin. The new NDC , released earlier this month, stipulates that Brazil will reduce greenhouse gas emissions by up to 67pc from 2005 levels by 2035. Roughly 5,000 companies will be subject to the cap-and-trade system, covering about 15pc of Brazil's emissions, according to finance ministry estimates. The new market will go into effect over a six-year period in five phases. The first phase involves defining the rules that will govern the market, which can take up to two years. In the second phase, companies will be required to measure their emissions, and in the third phase report emissions and present a plan to monitor and reduce them. In the fourth phase, the trading market will begin operating and the first carbon allocation plan will go into effect. In the fifth and final phase, the market will be fully operational. As expected, the agriculture sector was excluded from the regulated market and will not have emissions-reductions targets. The law also exempts waste treatment companies, including sewage treatment and landfill operators if they can demonstrate the use of technologies that neutralize greenhouse gas emissions. The legislation also addresses regulations for the voluntary market, helping finance decarbonization projects in the agriculture and forestry sectors. Brazil has the potential to generate up to $100bn in revenues from the carbon market by 2030, according to a study by think tank ICC Brasil. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cost of government support for fossil fuels still high

21/11/24

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21/11/24

Cost of government support for fossil fuels still high

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Cop: Talks in Baku torn between mitigation and finance

21/11/24

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21/11/24

Cop: Talks in Baku torn between mitigation and finance

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Brazil's Bndes approves $1.2bn in Climate Fund spending

21/11/24

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21/11/24

Brazil's Bndes approves $1.2bn in Climate Fund spending

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21/11/24

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21/11/24

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